How to Buy Algorand (ALGO): Step-by-Step Guide for Beginners
Algorand is a blockchain designed for speed, security and instant transaction finality. We explain what the ALGO coin does and how to buy it.
What Is Algorand?
Algorand was founded by Silvio Micali, an MIT professor and winner of the Turing Award, one of the top honors in computer science. The network runs on its own version of proof of stake, Pure Proof of Stake: blocks are proposed and verified by randomly selected ALGO holders.
A transaction on Algorand is final as soon as it's included in a block: the network doesn't fork, so a transfer can't be "rolled back." Fees are very low.
ALGO is used to pay fees and take part in consensus. Every account must keep a small minimum balance of ALGO.
Algorand Risks
- Competition from major smart contract networks with more users and apps.
- A small ecosystem. Strong technology alone doesn't ensure mass adoption.
- The foundation's role. Much of the development depends on the Algorand Foundation.
- Volatility that's typical for altcoins.
How to Buy Algorand (ALGO): A Beginner's Guide
- Sign up. Pick a major exchange that offers the ALGO/USDT pair. No account yet? See how to open a crypto exchange account.
- KYC and 2FA. ID documents and a selfie, then an authenticator app and an anti-phishing code. Only after that, make a deposit.
- Deposit. You need USDT. You can buy it via P2P or with a card; step by step: how to fund your account via P2P; about the stablecoin itself: what is USDT.
- Buy. Spot market, the ALGO/USDT pair, a limit order. Work out the amount in advance; this helps: how to calculate position size.
- Stop-loss. For trading, use one on every trade, no exceptions. If you'd rather not work out the levels yourself, there's Aspiro Trade: signals on 45 assets with a ready-made entry, take-profit and stop-loss (the asset list is in the app).
- Next steps. For storage, ALGO is withdrawn to a wallet that supports Algorand. Remember the minimum balance on the account. If you want to receive other tokens on the network, you first need to "opt in" to them in your wallet.
Storing ALGO: Which Option to Choose
| Goal | Where to keep it | Why |
|---|---|---|
| I trade using signals and levels | On the exchange | Stop-loss orders and selling work without delay |
| I'm holding long term | Wallet that supports Algorand | Your coins don't depend on what happens to the exchange |
| I'm holding a large amount | Hardware wallet | The keys never leave the device |
Our affiliate link. If you decide to open an OKX account, please sign up through it: it's free for you and doesn't change your terms. If you trade, the exchange pays Aspiro an affiliate bonus, which goes toward developing our apps and the free Aspiro Academy. We have no access to your account, funds or trades.
- You don't need a whole ALGO coin: you can start with a small amount.
- Only invest what you're prepared to lose.
- Trading? A stop-loss is mandatory; holding long term? Use your own wallet.
Frequently Asked Questions
Who created Algorand?
Silvio Micali, a cryptographer, MIT professor and Turing Award winner.
Why can't I withdraw all the ALGO from my account?
The network requires keeping a small minimum balance on the account. It increases if additional tokens are opted in to the account.
How is Algorand different from Ethereum?
Algorand was built from the start on proof of stake, with instant transaction finality and low fees. Ethereum has far more apps and users.
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